Evaluate Alternative Financing Plans Henriksen Co., which produces and sells biking equipment, is financed as follows: B

[answerhappygod]

Evaluate Alternative Financing Plans Henriksen Co Which Produces And Sells Biking Equipment Is Financed As Follows B 1 (29.81 KiB) Viewed 11 times

Evaluate Alternative Financing Plans Henriksen Co., which produces and sells biking equipment, is financed as follows: Bonds payable, 5% (issued at face amount) $6,000,000 Preferred $2.00 stock, $100 par 3,000,000 Common stock, $25 par 5,000,000 Income tax is estimated at 40% of income. What factors other than earnings per share should be considered in evaluating alternative financing plans? a. Bonds represent a fixed annual interest requirement, while dividends on stock do not. b. Dividends reduce retained earnings. Oc. Bond holders exercise control over board of directors decisions. Od. Stock must be paid annual dividends. Oe. Net income is reduced by dividend expense.